Delaware News

State Auditor Kathy McGuiness: Delaware Could See $43 Million Annually from Regulating, Taxing Marijuana for Adult Use

Auditor of Accounts | Former Auditor of Accounts - Kathy McGuiness | Date Posted: Monday, January 25, 2021



DOVER, DELAWARE – State Auditor Kathy McGuiness released a report today showing that Delaware could realize more than $43 million in annual tax revenue from the regulation and taxation of legal marijuana.

In a new special report titled “Millions in Revenue Anticipated from Legalizing Marijuana in Delaware,” McGuiness said that regulating the sale of marijuana for adult use would also allow for new business formation and the creation of more than 1,000 new jobs over five years.

“Forty-three million dollars in state tax revenue would be a boon to Delaware’s coffers,” McGuiness said. “That money could be used to plug budget holes in the short term and would continue to provide revenue for all kinds of important initiatives in the long term.”

The special report uses publicly available data to determine that legalizing marijuana use for adults 21 and older would create a $215 million industry in the state. It assumes a reasonable 20 percent excise tax to reach the $43 million figure.

“Statistics show that public opinion on allowing recreational marijuana for adult use has changed dramatically in the last few years, with a majority of Delawareans now supporting it,” McGuiness said. “The prohibition on marijuana has only led to a robust black market, which could be minimized by responsible and thoughtful legalization.”

The report also examines other states’ current or proposed regulatory frameworks for taxing the cultivation and sale of recreational marijuana.

“With neighboring states either legalizing it or considering doing so, taking action now is the only way to prevent Delaware from being at a competitive disadvantage in the future,” McGuiness said. “The First State cannot and should not be the last state to approve legalization in the region.”

The new special report can be located on the Auditor’s Office website found here.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

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State Auditor Kathy McGuiness: Delaware Could See $43 Million Annually from Regulating, Taxing Marijuana for Adult Use

Auditor of Accounts | Former Auditor of Accounts - Kathy McGuiness | Date Posted: Monday, January 25, 2021



DOVER, DELAWARE – State Auditor Kathy McGuiness released a report today showing that Delaware could realize more than $43 million in annual tax revenue from the regulation and taxation of legal marijuana.

In a new special report titled “Millions in Revenue Anticipated from Legalizing Marijuana in Delaware,” McGuiness said that regulating the sale of marijuana for adult use would also allow for new business formation and the creation of more than 1,000 new jobs over five years.

“Forty-three million dollars in state tax revenue would be a boon to Delaware’s coffers,” McGuiness said. “That money could be used to plug budget holes in the short term and would continue to provide revenue for all kinds of important initiatives in the long term.”

The special report uses publicly available data to determine that legalizing marijuana use for adults 21 and older would create a $215 million industry in the state. It assumes a reasonable 20 percent excise tax to reach the $43 million figure.

“Statistics show that public opinion on allowing recreational marijuana for adult use has changed dramatically in the last few years, with a majority of Delawareans now supporting it,” McGuiness said. “The prohibition on marijuana has only led to a robust black market, which could be minimized by responsible and thoughtful legalization.”

The report also examines other states’ current or proposed regulatory frameworks for taxing the cultivation and sale of recreational marijuana.

“With neighboring states either legalizing it or considering doing so, taking action now is the only way to prevent Delaware from being at a competitive disadvantage in the future,” McGuiness said. “The First State cannot and should not be the last state to approve legalization in the region.”

The new special report can be located on the Auditor’s Office website found here.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

###

image_printPrint

Related Topics:  ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.